High street awaits next entrepreneur wave

There is hope for the high street as the next generation of entrepreneurs are set to open up shop as 1 in 5 budding entrepreneurs are set to start a retail business in the next 2 years.

Research reveals that Britain’s high streets are set to be pulled back from the brink of extinction by a new wave of entrepreneurs. Research from business software and services provider Sage UK revealed that 1 in 5 of people planning on starting a business, will open up a physical shop in the next two years.

The in-depth research by You Gov was conducted as part of Sage’s Discover Your Business Potential campaign. The Entrepreneurial Britain study surveyed 3,320 people, exploring how many people are planning on setting up a business, where these businesses will be and in what sectors, with retail proving the most popular.

High street shop closures have impacted town and cities across the UK. In 2011 the problem reached its peak with 14 shops closing every day*, and many high streets are yet to recover. But this is set to change with just under half of all entrepreneurs (47%) planning on starting a business in a shop or office.

Lee Perkins, Managing Director for Sage’s Small Business Division explained, “Despite the success of firms like Amazon and Facebook, it’s fascinating to see that the next generation of entrepreneurs are still drawn to bricks as much as clicks when it comes to setting up a business. Everyone has business potential and it is encouraging to see so many people set to launch a new venture in the next couple of years. Whether it’s the Mary Portas effect or not, without doubt, there is hope for the UK high street.”

It is Britain’s next generation of Entrepreneurs who are bringing hope and a new face to the high street, with the research suggesting that Britain's high streets will look very different over the next few years, with many boutique bakeries and vintage clothing shops set to spring up. Over half of all 18-24 year olds (52%) that are planning on starting their business are aiming to do so in an actual shop.

Studies on shop closures have shown that the north east of England was the area hardest hit, with 15 per cent of retailers closing. However, Sage’s research suggests that things are looking up for the region, as it had the highest number of people planning on starting a business compared with the rest of the UK with retail being the most popular sector (22%).

Discovering Business Potential

The Entrepreneurial Britain research was conducted as part of a wider Sage initiative where the company is looking to provide prospective entrepreneurs and existing small business owners with guidance and insights that help them to discover their potential.